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Autumn Budget 2024: What Do the Employers' National Insurance Changes Mean for Your Business? With the recent announcement from Chancellor Rachel Reeves, Employers' National Insurance is set to rise significantly. From April 2025, the rate increases from 13.8% to 15%, alongside a lowered NI threshold for employers from £9,100 to £5,000. For many, this will bring substantial cost implications. While the Employment Allowance has increased to £10,500 to offset some of this impact, planning ahead is essential, especially for budgeting payroll costs and managing headcount in the upcoming year. 🔗 For insights on how this may affect your business, and how to prepare, read the full article linked in the Comments below.

In the recent 2024 Autumn Budget, Chancellor Rachel Reeves announced some significant changes to Employers’ National Insurance. These changes are due to take effect from 1 April 2025 and its prompting businesses to take a closer look at their payroll budgets and strategies. To help you understand this and to breakdown this imminent change we have highlighted in the below article the impact it may have on your business. Still concerned about how these changes could affect your business? Please get in touch with us. https://lnkd.in/eSiuPWFT #budgetupdates

Payroll has become complex in 2024. Significant updates are affecting compliance. This year, the Social Security taxable wage base has risen to $168,600. New thresholds for 401(k) contributions and Health Savings Accounts (HSAs) allow employees to save more on a pre-tax basis. Many states have adjusted minimum wages. This may impact payroll calculations for businesses with multi-state operations. If you’re unsure about any of these updates or how they apply to your payroll process, feel free to reach out. I’m here to help! #PayrollCompliance #BusinessOwnerTips #PayrollManagement

National Insurance Changes from April 2025 Prepare now by reviewing your payroll, exploring cost-saving measures, and ensure you are positioned to benefit fully from the increased employment allowance. The changes to National Insurance will have a mixed impact on small businesses in the UK. Here’s what these changes mean and the implications: ➡️The employer's National Insurance rate will rise from 13.8% to 15%, representing a 1.2 percentage point increase. This will increase payroll costs for employers and may especially impact businesses with larger teams or those employing higher-paid staff. ➡️Reduction in the Secondary Threshold The threshold at which employers start paying NI will be lowered from £9,100 to £5,000. This means employers will pay NI on a greater portion of employees' earnings, further increasing costs. For small businesses with lower-paid workers, this could have a notable impact on their expenses. ➡️Increase in Employment Allowance The employment allowance will increase from £5,000 to £10,500. This will help small businesses by reducing the amount of NI they need to pay. Only businesses eligible for the allowance (those with an NI liability of £100,000 or less) will benefit, which primarily includes SMEs. Small businesses may need to consider measures to absorb these increased costs, such as increasing prices, improving efficiency, or limiting new hires. While the increase in employer NI rates and the reduced secondary threshold will add to the financial burden, the higher employment allowance provides some relief for smaller businesses. However, the overall impact will depend on the size and structure of the business. ☎️If you have concerns or need advice do contact us. ☎️ #NationalInsurance #SmallBusinessUK #PayrollManagement #CostSaving #SMEBusiness #PayrollCosts

National Insurance Changes from April 2025 Prepare now by reviewing your payroll, exploring cost-saving measures, and ensure you are positioned to benefit fully from the increased employment allowance. The changes to National Insurance will have a mixed impact on small businesses in the UK. Here’s what these changes mean and the implications: ➡️The employer's National Insurance rate will rise from 13.8% to 15%, representing a 1.2 percentage point increase. This will increase payroll costs for employers and may especially impact businesses with larger teams or those employing higher-paid staff. ➡️Reduction in the Secondary Threshold The threshold at which employers start paying NI will be lowered from £9,100 to £5,000. This means employers will pay NI on a greater portion of employees' earnings, further increasing costs. For small businesses with lower-paid workers, this could have a notable impact on their expenses. ➡️Increase in Employment Allowance The employment allowance will increase from £5,000 to £10,500. This will help small businesses by reducing the amount of NI they need to pay. Only businesses eligible for the allowance (those with an NI liability of £100,000 or less) will benefit, which primarily includes SMEs. Small businesses may need to consider measures to absorb these increased costs, such as increasing prices, improving efficiency, or limiting new hires. While the increase in employer NI rates and the reduced secondary threshold will add to the financial burden, the higher employment allowance provides some relief for smaller businesses. However, the overall impact will depend on the size and structure of the business. ☎️If you have concerns or need advice do contact us. ☎️ #NationalInsurance #SmallBusinessUK #PayrollManagement #CostSaving #SMEBusiness #PayrollCosts

Did you know that a quarter of adults have less than £100 in savings? Payroll Savings is a great tool to help people build a healthy savings habit by contributing directly from their paycheck. They can access the money any time they need it, but while they don't, they earn industry-leading interest. Check out this review from one of our users. #savings #payrollsavings #financialwellbeing

Have you paid your employees’ super guarantee (SG) contributions for this quarter? 🏦 ⏰ Key Dates: Due Date: 28 July 2024 Payment Received By: 29 July 2024 (as 28 July falls on a weekend) Ensure your super fund receives your payment by the deadline to avoid any penalties. Late payments can lead to a super guarantee charge, which is not tax-deductible! 🔍 Important Notes: New SG Rate: As of 1 July, the SG rate has increased to 11.5%. Ensure all payments made from this date reflect the new rate. For Payments Made Before 1 July: The SG rate of 11% applies for the quarter ending 30 June. Stay on top of your SG obligations and keep your business compliant. If you need assistance, Girl Friday Sydney is here to help with all your payroll and superannuation needs! #SuperGuarantee #Payroll #SGContributions #BusinessCompliance #GirlFridaySydney #TaxTips #FinancialManagement

The employment allowance, a government initiative, allows eligible employers to reduce their annual National Insurance contributions. Designed to support smaller businesses, this allowance provides financial flexibility for investment in operations and workforce. From April 2025, the employment allowance will increase to £10,500, as announced in the latest budget statement. This significant increase reflects the government’s commitment to easing the financial burden on businesses, enabling them to thrive in an increasingly competitive environment, in reality is just helps some small business avoid the worst impacts of the increase in employers NIC. Historically, the employment allowance has evolved to adapt to the changing economic landscape. Initially introduced to support small businesses by reducing employment costs, it has been periodically adjusted to reflect the needs of employers and the broader economy. The allowance has been vital in helping businesses manage payroll expenses, facilitating growth and stability over the years. Did you know if previous year's have not been claimed, incorrectly then we may be able to help you with a backdated claim? Contact us today for a free consultation or advice on all things employment allowance. info@lucaswhitepayrollservices.co.uk ~ 0161 302 8790 #PAYE #Payroll #upcomingchanges #tax #specialists #payrollprovider #businesses #employers #government #uk #growth #thebest #payrollservices #nic Lucas White Payroll Services Ltd

The recent UK Budget announcement brings forward notable changes to income tax and National Insurance thresholds, effective from 2028. While these adjustments won't apply immediately, they mark a critical shift that could impact payroll management, employee retention, and financial planning. For our clients, these upcoming changes present a timely opportunity to evaluate financial strategies, enhance employee value propositions, and position themselves as supportive, future-focused employers. 📌 Proactive planning for these shifts can help businesses prepare for payroll adjustments, attract and retain talent, and foster financial well-being across their teams. #Budget2024 #PayrollPlanning #FutureWorkforce #EmployeeRetention

Feeling the Pinch? NI Changes and Your Business The recent changes to National Insurance (NI) contributions in the 2024 budget are set to impact businesses across the UK from April 2025. Here's what you need to know: Increased Employer NI Rate: Employers will now pay 15% NI on employee earnings above £5,000 per year, up from 13.8%. Lower Earnings Threshold: This means businesses will start paying NI on employee earnings sooner. What does this mean for your business? Increased Payroll Costs: These changes will directly increase your payroll costs. Budgetary Adjustments: You may need to adjust your budget to accommodate these increased costs. Potential Impact on Hiring Decisions: Some businesses may reconsider hiring plans or adjust salary packages to offset the additional costs. What can you do? Consult with an Accountant: Seek expert advice to understand the full impact of these changes on your business. Review Payroll Processes: Ensure your payroll system is updated to reflect the new NI rates and thresholds. Consider Long-Term Strategies: Explore ways to mitigate the impact of these changes, such as investing in automation or upskilling your workforce. By understanding the implications of these changes, you can take proactive steps to protect your business's bottom line. #NIchanges #employers #budget2024 #business